‘Tragic News’: Irish Distillery Waterford Whiskey Suspends Sales Amid Bankruptcy

Waterford Whisky has filed for bankruptcy with the HSBC Bank. (Photo: Waterford Whisky/Facebook)

The Irish Times reported on Wednesday that Waterford Whisky is suspending its sales and entering receivership after losses of €7.7 million ($8 million) over the past few years. The outlet reports that HSBC Bank will take over the distillery as bankruptcy proceedings are set into motion.

“It’s tragic news,” Waterford CEO and Founder Mark Reynier said, according to the Irish Times. “Anything I’m going to say isn’t going to be adequate to describe my feelings right now. It’s been a great effort from the whole Waterford team. They’ve given great dedication, done a great job. I’m sorry I’ve let them down.”

HSBC is putting an action plan into place, and The Irish Times reports that within the next few weeks, HSBC will likely sell assets, attempt to find a buyer to purchase the brand or even sell the distillery.

The outlet reports that Waterford Whisky showed it had sales amounting to €3 million ($3.15 million) in 2022 a dip of €300,000 ($315,000) from the prior year. The records showed the whiskey brand claimed the losses stemmed from its choice of distributor in the U.S.

According to the Irish Times, Waterford Whisky’s losses amounted to a total of €7.7 million ($8.1 million) and a  €40.1 million ($42 million) drop in its stocks.

Raynier’s claim to fame stems from the fact he brought back Bruichladdich Distillery and has been a tireless champion of bringing the concept of terroir to whisky, per Whisky Magazine.

Raynier claimed he’s been in “a spiral” of “despair, panic, fear” and “embarrassment” since Waterford filed for bankruptcy. As for what caused the distillery to experience such losses, Raynier shared his theories.

“We borrowed to distil more than we needed, a strategic reserve, if you will — insurance against future crisis. What I didn’t foresee was a global pandemic, a cost-of-living crisis fuelled by war, and soaring interest rates.”

The brand launched right on the eve of the COVID-19 pandemic, timing which the whisky entrepreneur refers to as “disastrous,” according to Whisky Magazine.

Waterford’s issues stemmed from bad timing, according to Reynier.

“Interest payments became crippling. Our sales weren’t covering them. And in a young brand, you’re always playing catch-up — you don’t have the reserves of an established player.”

It does not appear that a lack of quality or talent behind the brand was the reason for its bankruptcy.

Waterford’s whiskeys, though somewhat under-the-radar, were well received by critics. The brand’s Peated Cuvée Fumo was highly reviewed as a distinctive and balanced peated Irish whiskey, and a full review can be viewed here. Additionally, its expression “The Cuvee” has earned an impressive Raided Score® of 92.

The cost-of-living crisis has thrown more than its fair share of barbs at whisky brands across Europe, and Waterford Whisky’s case is hardly unique. As prices have continued to skyrocket, many brands have been forced to make adjustments and pay their people accordingly. Businesses that have lagged behind or have not met employee demands have faced threats of strikes and disruptions to the supply chain.

Yet Reynier shared with Whisky Magazine that he has no intention of giving up, and he is determined to find a way for Waterford.

“This fight isn’t over,” Reynier expressed. “It’s a recalibration. The quality of our whisky, the integrity of our vision, they’re too good to let go. I’ll do my utmost to rescue Waterford.”